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Policies and procedures for developing acquisition plans; determining whether to use commercial or Government resources; whether it is more economical.

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Presentation on theme: "Policies and procedures for developing acquisition plans; determining whether to use commercial or Government resources; whether it is more economical."— Presentation transcript:

1 Policies and procedures for developing acquisition plans; determining whether to use commercial or Government resources; whether it is more economical to lease or purchase equipment; and whether functions are inherently governmental

2  Acquisition planning should begin as soon as the need is identified. ◦ Form a team (contracting, legal and technical). ◦ Review previous plans for similar acquisitions and discuss the lessons learned. ◦ Coordinate with the cognizant competition advocate if it uses other than full and open competition. ◦ Avoid issuing requirements that restrict competition and/or increases prices. ◦ Nominate and designate a COR.

3  Agencies shall perform acquisition planning, conduct market research and select the appropriate contract type for all acquisitions to promote/provide: 1.Acquisition of commercial items; and 2.Full and open competition or to obtain competition to the maximum extent practicable.

4  Avoid issuing requirements on an urgent basis or with unrealistic delivery or performance schedules because it restricts competition and increases prices.  The acquisition strategy shall be coordinated with the cognizant small business specialist if the estimated contract is: ◦ $8M or > for DOD; ◦ $6M or > for NASA, GSA, DOE; and ◦ $2.5M or > for all other agencies. Contents of Written Acquisition Plans:  Identify milestones at which decisions should be made and address considerations that will control the acquisition. Content will vary but may include: (see next slide)

5 Acquisition background and objectives :  Statement of need, history, and potential alternatives.  Applicable conditions, and capabilities.  Cost and cost concepts used (life-cycle cost, design-to-cost).  Delivery or performance-period requirements.  Consequences of trade-offs and risks. Plan of action:  Identify prospective sources and the impact of bundling.  Describe how competition will be sought, promoted and sustained.  Contract type and source-selection procedures.  Acquisition considerations (multi-year contract, options, deviations)  Contractor vs Govt performance & inherently governmental functions.  Make or buy decisions, and security considerations  Government-furnished property and information  Milestones (SOW, specs & requirements, issuance of synopsis & solicitation, evaluation of proposals, negotiations, award).

6  Offerors shall incorporate items currently available; and items that can be acquired competitively during the system’s service life.  Offerors shall identify opportunities to competitively obtain required items during the life of the system and provide the right to use technical data for competitive future acquisitions (at a specified cost).

7  Market research must be conducted to determine whether bundling is necessary and justified and would derive measurably substantial benefits as it limits/impedes small business competition.  Benefits must be equivalent to 10% of the estimated contract if the contract is $94M.

8  Bundling may be necessary even when the expected benefits do not meet the thresholds (previous slide) but are critical to the agency’s mission success.  When a contract has substantial bundling, the acquisition plan must identify the benefits ($); ways competition was promoted to small business concerns; strategies to reduce bundling, and the rationale for not choosing those alternatives. A contract is consider to have substantial bundling when it is greater than: ◦ $8M for DOD; ◦ $6M NASA, GSA or DOE; and ◦ $2.5M for all others) then:

9  Procure items in quantities that result in the greatest cost benefit (not to exceed required qty).  Offeror must state whether the quantity is economically advantageous or if they recommend a different quantity.  Action should only be taken if there is a potential for significant savings. The CO shall consult with the requirements developer before proceeding. If they agree with the offeror, the solicitation should be amended or canceled.

10  The Government must perform inherently governmental activities with Government personnel; and subject commercial activities to the forces of competition.  The agency shall give appropriate cost consideration when deciding between agency and contractor performance.

11 Considerations to make when deciding to lease or purchase  Length of time and extent of use of equipment.  Financial and operating advantages of alternative types and makes of equipment.  Cumulative rental payments vs net purchase price.  Transportation, installation, maintenance and other costs.  Potential obsolescence because of imminent technological improvements.  Trade-in or salvage value, later use by other agencies, and imputed interest.

12 7.402 - Acquisition Methods.  Purchase method. Do not rule out purchasing even if there are technological advances.  Lease method may serve as an interim measure when immediate use is required. A lease with option to purchase is preferable. 7.403 – General Service Administration Assistance: assist in decision by providing information such as:  Pending price adjustments to Federal Supply Schedule contracts;  Recent or imminent technological developments;  New techniques and industry or market trends.

13  Applies to all contracts for services, but does not apply to services obtained through personnel appointments, advisory committees, or personal services contracts issued under statutory authority.  Contracts shall not be used for the performance of inherently governmental functions.  As a rule of thumb, contracts are inherently governmental when it results is the direct conduct, control, or command of an event/decision. It also includes functions that involve determinations, approval or policy decisions.  The functions that are not inherently governmental involve work that is advisory, provides recommendation, or analysis.


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